CASH 2018 Annual Report

144 Long Term Debt September 30, 2018 2017 (Dollars in Thousands) Long-term FHLB advances $ — $ — Trust preferred securities 13,661 10,310 Subordinated debentures (net of issuance costs) 73,491 73,347 Long-term capital lease 1,811 1,876 Total 88,963 85,533 At September 30, 2018 and 2017, the Company had no long-term advances from the FHLB. At September 30, 2018, the scheduled maturities of the Company's long-term debt were as follows for the years ending: September 30, (Dollars in Thousands) Trust preferred securities Subordinated debentures Long-term capital lease Total 2019 $ — $ — $ — $ — 2020 — — 73 73 2021 — — 77 77 2022 — — 82 82 2023 — — 87 87 Thereafter 13,661 73,491 1,492 88,644 Total long-term debt $ 13,661 $ 73,491 $ 1,811 $ 88,963 Certain trust preferred securities are due to First Midwest Financial Capital Trust I, a 100%-owned nonconsolidated subsidiary of the Company. The securities were issued in 2001 in conjunction with the Trust’s issuance of 10,000 shares of Trust Preferred Securities. The securities bear the same interest rate and terms as the trust preferred securities. The securities are included on the Consolidated Statements of Financial Condition as liabilities. The Company issued all of the 10,310 authorized shares of trust preferred securities of First Midwest Financial Capital Trust I holding solely securities. Distributions are paid semi-annually. Cumulative cash distributions are calculated at a variable rate of London Interbank Offered Rate (“LIBOR”) plus 3.75% (6.35% at September 30, 2018, and 5.22% at September 30, 2017), not to exceed 12.5%. The Company may, at one or more times, defer interest payments on the capital securities for up to 10 consecutive semi-annual periods, but not beyond July 25, 2031. At the end of any deferral period, all accumulated and unpaid distributions are required to be paid. The capital securities are required to be redeemed on July 25, 2031; however, the Company has a semi-annual option to shorten the maturity date. The redemption price is $1,000 per capital security plus any accrued and unpaid distributions to the date of redemption. Holders of the capital securities have no voting rights, are unsecured and rank junior in priority of payment to all of the Company’s indebtedness and senior to the Company’s common stock. Although the securities issued by the Trust are not included as a component of stockholders’ equity, the securities are treated as capital for regulatory purposes, subject to certain limitations. Through the Crestmark Acquisition, the Company acquired $3.4million in floating rate capital securities due to Crestmark Capital Trust I, a 100%-owned nonconsolidated subsidiary of the Company. The subordinated debentures bear interest at LIBOR plus 3.00%, have a stated maturity of 30 years and are redeemable by the Company at par, with regulatory approval. The interest rate is reset quarterly at distribution dates in February, May, August, and November. The interest rate as of September 30, 2018 was 5.31%. The Company has the option to defer interest payments on the subordinated debentures from time to time for a period not to exceed five consecutive years.